Highlights from jULY 2010 MeeTing Governmental Relations Committee Meeting

submitted by Rober Pedersen

• ARA Legislative Caucus April 2010
• California delegates:  Steve Anthony, Chris Smith, Paul Schlerf, Robert Pedersen and Ted Cook
• Robert Pedersen visited:  Senators Feinstein and Boxer, Congressman McClintock, Pelosi, Honda and Lofgren.
• Issues
• Federal Estate Taxes – Current law to expire in 2011 and revert back to 2001 levels of exemption. Uncertainty for business owners who have a significant portion of their net worth invested in their equipment and buildings.
• Card Check – Sleeping for now but not dead but want it killed.
• Transportation and Infrastructure Spending – Long term investment in our transportation infrastructure will pay dividends for decades.
• CARB
• Continues the discussion on the development of an off-road voucher program on their 2nd public workgroup teleconference July 29, 2010, from 10:00 AM – 12:00 PM.   The proposed off-road voucher program is intended to be a streamlined version of the current Off-Road Equipment Replacement Program in the Carl Moyer Program Guidelines.
• The Air Resources Board has $28 million in grants available through its Voucher Incentive Program (VIP) to help independent truckers and small fleet owners replace or retrofit older, high-polluting big rigs ahead of California’s regulatory deadlines. They are available only to owners of small fleets – one to three trucks – for replacing the dirtier models with newer, cleaner ones.

• November 2, 2010 Elections - CalChamber Positions

• Proposition 18: Safe, Clean and Reliable Drinking Water Supply Act of 2010 — Support.

Unless action is taken, experts warn that our state will face continued water shortages, the potential for catastrophic failure of our water delivery system, and environmental collapse in areas vital to drinking water and wildlife.

 

• Proposition 19: Regulate, Control and Tax Cannabis Act of 2010 — Oppose.

If this measure is approved, employers, including the State of California, would be faced with the burden of proving that an employee who tests positive for marijuana is “actually impaired” from performing the job before taking any adverse action against the employee.

• Proposition 20: Redistricting of Congressional Districts – Voters FIRST Act for Congress — Support.

This proposed act would extend the successful Proposition 11 provisions from 2008 to give the Citizens Redistricting Commission the additional authority to draw new boundaries for U.S. congressional districts in 2011.

• Proposition 22: Local Taxpayer, Public Safety and Transportation Protection Act — Support.

This proposed initiative would revoke the state’s ability to borrow from local government property tax funds currently authorized by Proposition 1A of 2004 and prohibit the state from borrowing Proposition 42 funds (gas tax), which voters have dedicated to transportation and mass transit.

• Proposition 24: Repeal Corporate Tax Loopholes Act – Oppose.

It repeals recently enacted tax benefits, the elective single sales factor, net operating loss (NOL) carryback, and tax credit sharing. It would additionally repeal the recently enacted expansion of the NOL carryover from 10 to 20 years.

• Proposition 25: On Time Budget Act of 2010 – Oppose.

Proposition 25 exempts the budget bill and other bills providing for appropriations related to the budget bill from the existing two-thirds vote requirement, and provide that those take effect immediately. Therefore, it permits tax hikes without a two-thirds vote if the increase is attached to a budget appropriation.

• Proposition 26: Stop Hidden Taxes Initiative – Support.

It closes a loophole in the law that allows the Legislature to raise, by a majority vote rather than the required two-thirds vote, taxes on products and services simply by calling them “fees” instead of “taxes.”

• Proposition 27: Eliminates State Commission on Redistricting – Oppose.

It overturns the California Voters First Act reform (Proposition 11 of 2008), which the CalChamber supported. Proposition 11 allows the voters to select their elected representatives.

No Positions Yet

The CalChamber has not yet taken positions on Proposition 21, which establishes an $18 annual vehicle license surcharge to help fund state parks and wildlife programs and grants free admission to all state parks for surcharged vehicles; and Proposition 23, which suspends implementation of AB 32, California’s greenhouse gas reduction law, until the state’s unemployment rate drops to 5.5 percent or less for four consecutive quarters.
For more information on CalChamber ballot positions, visit www.calchamber.com/ballot

V.         Five Unaffordable Facts About The New Healthcare Law: The Patient Protection and Affordable Care Act

1. The tax credit is NOT a panacea for small businesses — in reality, these tax cuts will do little to make purchasing insurance more affordable for small firms.

2. A tax on small business health insurance plans — the “health insurance fee” is actually a tax on small business. The fee begins at $8 billion in 2014 and steadily increases to $14.3 billion in 2018. New taxes on insurers mean new costs passed on to customers. Small business will be paying.

3. Increase the tax paperwork costs on small businesses — “Corporate reporting” requirement will place a new and enormous tax-filing burden on all small business owners. The cost of complying will increase the cost of doing business and falls disproportionally on small business owners.

4. Unprecedented increase in Medicare payroll tax — HR 3590 increases Medicare payroll tax to 2.35 percent and uses additional revenue to pay for non-Medicare programs, creating a dangerous precedent to use these taxes to pay for more non-Medicare programs in the future.

5. New Medicare tax on non-payroll income — this tax continues the trend of dedicating Medicare tax revenue to non-Medicare programs and expands the tax to additional courses of income. Tax will now apply to capital gains, dividends, rents and royalties.

 

 

Your feedback is appreciated. If you have any questions for the Governmental Relations Committee please feel free to contact the CRA or myself.